Preheat the oven to 180 °F (350 °F). Grease 2 baking sheets.
Cream the butter and sugar. Add the coconut and mix well.
Sift the dry ingredients together and add to the butter mixture.
Roll teaspoons of the dough into round balls and place well apart onto the baking sheets. Press the balls down with your thumb.
Bake for 10 to 20 minutes until cooked through and cool the biscuits on a wire rack.
Melt the chocolate and milk over boiling water and stir. Sandwich two biscuits together with a dab of the melted chocolate. Store the biscuits in a cookie jar.